Wellington, Feb 1 New Zealand's minimum wage rate will increase "moderately" to $14.12 an hour from April 1, the government said.
Workplace Relations and Safety Minister Brooke van Velden on Thursday said the government is committed to striking the right balance between protecting the incomes of the lowest paid workers and maintaining labour market settings that encourage employment, Xinhua news agency reported.
The government has taken a cautious approach to the minimum wage this year as the economic context has changed significantly over the past year, van Velden said.
While unemployment is currently low, the labour market is softening due to high net migration rates, constrained consumer spending and subdued economic growth, she said.
As a ratio to the median wage, the minimum wage has increased from 62 per cent of the median wage in June 2017 to 72 per cent in June 2023, which has made it harder for businesses to issue pay rises or take on more staff, said the minister.
However, the opposition Labor Party criticised the minimum wage increase as "tiny."
The minister said the increase has taken into consideration the current economic conditions and the historically large increases to the minimum wage that have distorted relativities with other wage-earners. Training wages and starting wages will remain at 80 percent of the adult minimum wage rate.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor